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Credit Management

Former Member
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Dear All,

Please find the attachment of OVA8 screen shot,Check the configuration ,My doubt is how the system is checking different  checks at the time of order processing(oldest open item,Open item & Dynamic credit check),Why different checks required for one credit control area  .

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Answers (1)

Answers (1)

Former Member
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Hi Ravi,

SAP has provided different types of Credit Checks to facilitates different business requirements

Taking your screenshot as Example

  1. Dynamic Credit Check: Open Orders+Open Deliveries+Open Billing Documents+ Horizon Period.
  2. Open Items: Over Due Open items check is based on ratio of open items are overdue by certain number of days and Maximum open percentage. Customer balance must not exceed certain percentage.
  3. Oldest Open Items: old open items which pending for payments and number of days, As you mentioned in the above screenshot as "0"  with above setting system will behave as below

Ex: customer has a credit limit  and has payment terms as " immediate payment without deductions" and customer has invoice with billing date as 21.07.2014. His net due date will become as 21.07.2014 because his payment terms. There is no payment has been received on 21.07.2014. User has again trying to create a sales order for the same customer, system will now throw an error saying "Oldest Open Items Overdue"

This is purely based on Business requirement apart standard credit checks,  SAP also provided some user exits for user defined checks if standards doesnt match with business requirement we can use our own(business) defined checks.

In my project, we are using 2 types of checks. 1. Dynamic 2. Oldest Open Items

Hope I have answered your query.

Regards

Kamal

Former Member
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Hi Kamal,

Thank you for your reply, Here dynamic credit check already activated,Still what is the use of open items and oldest open items. When(open items & oldest open items)it will work & when dynamic credit check will work.

Former Member
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Hi Ravi,

Each Credit check has its own functionality. If business needs additional check apart from Dynamic credit check then u can use other checks additionally and already explained the functionality of 3 types of check in my previous reply.

Hope you are clear now


Regards

Kamal

Former Member
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Kamal ji ,Thank you for your reply,Finally last question,When 3 checks are activated,When the first check will work ,when the second and finally what ,Can you please explain with one example.It will give clear picture for me.

Former Member
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Dear Ravi,

Please put some effort to get some details about credit management and different types of credit checks. Atleast google it, u have lots of documents and blogs regarding credit mangement.

Regards

Kamal